GBP/NZD July Currency update
Aug 3rd 2010, 12:15 pm
#1
BE Enthusiast
Thread Starter
Joined: Dec 2004
Posts: 524
GBP/NZD July Currency update
Similar to the AUD story, the Kiwi Dollar came under pressure at the beginning of the month, as investor shunned risky assets, with the commodity currencies suffering heavy selling. Reasons to sell the NZD were confirmed by weak NZ data with NBNZ Business Confidence dropping to 40.2 (prev 48.2), Building Consents plunging -9.6% (prev +8.5%) and ANZ Commodity Prices showing a decline of 1.2%.
NZ Retail Sales came out worse than expected at 0.4% m/m (0.6% exp), but were a significant improvement from June’s negative figure. Most economists were expecting the RBNZ to hike rates by 25 bp’s to 3%, though the release of weaker than expected CPI figures (0.3% vs 0.5% exp) did cast some doubt over this.
As expected though, they raised official rates by 25 basis points but signalled the pace of further hikes was likely to slow, citing a deteriorating trading partner outlook and subdued domestic demand as reasons for caution. The NBNZ Business Confidence (27.9 from 40.2) survey supported the central bank view as current sentiment and the outlook for the next 12 months took a step backwards.
Current Central Bank Rates:
NZ (Reserve Bank): 3.00%
UK (Bank of England): 0.50%
GBP/NZD Highs & Lows of July:
High: 2.2159
Low: 2.0983
A movement of: 5.6%
Difference this would make on £200k
High: NZD 443,180
Low: NZD 419,660
A difference of NZD 23,520
All of the information above can be explained clearly by your personalised dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected].
Kind regards
Mark Bodega
Director - HiFX
NZ Retail Sales came out worse than expected at 0.4% m/m (0.6% exp), but were a significant improvement from June’s negative figure. Most economists were expecting the RBNZ to hike rates by 25 bp’s to 3%, though the release of weaker than expected CPI figures (0.3% vs 0.5% exp) did cast some doubt over this.
As expected though, they raised official rates by 25 basis points but signalled the pace of further hikes was likely to slow, citing a deteriorating trading partner outlook and subdued domestic demand as reasons for caution. The NBNZ Business Confidence (27.9 from 40.2) survey supported the central bank view as current sentiment and the outlook for the next 12 months took a step backwards.
Current Central Bank Rates:
NZ (Reserve Bank): 3.00%
UK (Bank of England): 0.50%
GBP/NZD Highs & Lows of July:
High: 2.2159
Low: 2.0983
A movement of: 5.6%
Difference this would make on £200k
High: NZD 443,180
Low: NZD 419,660
A difference of NZD 23,520
All of the information above can be explained clearly by your personalised dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected].
Kind regards
Mark Bodega
Director - HiFX
